Correlation Between Procter Gamble and GraniteShares 15x
Can any of the company-specific risk be diversified away by investing in both Procter Gamble and GraniteShares 15x at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Procter Gamble and GraniteShares 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procter Gamble and GraniteShares 15x Long, you can compare the effects of market volatilities on Procter Gamble and GraniteShares 15x and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Procter Gamble with a short position of GraniteShares 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procter Gamble and GraniteShares 15x.
Diversification Opportunities for Procter Gamble and GraniteShares 15x
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Procter and GraniteShares is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and GraniteShares 15x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 15x Long and Procter Gamble is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Procter Gamble are associated (or correlated) with GraniteShares 15x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 15x Long has no effect on the direction of Procter Gamble i.e., Procter Gamble and GraniteShares 15x go up and down completely randomly.
Pair Corralation between Procter Gamble and GraniteShares 15x
Allowing for the 90-day total investment horizon Procter Gamble is expected to generate 2.89 times less return on investment than GraniteShares 15x. But when comparing it to its historical volatility, Procter Gamble is 6.35 times less risky than GraniteShares 15x. It trades about 0.06 of its potential returns per unit of risk. GraniteShares 15x Long is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,858 in GraniteShares 15x Long on November 18, 2024 and sell it today you would lose (392.00) from holding GraniteShares 15x Long or give up 5.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procter Gamble vs. GraniteShares 15x Long
Performance |
| Timeline |
| Procter Gamble |
| GraniteShares 15x Long |
Procter Gamble and GraniteShares 15x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procter Gamble and GraniteShares 15x
The main advantage of trading using opposite Procter Gamble and GraniteShares 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble position performs unexpectedly, GraniteShares 15x can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GraniteShares 15x will offset losses from the drop in GraniteShares 15x's long position.| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
| GraniteShares 15x vs. Direxion Daily MSFT | GraniteShares 15x vs. Direxion Daily GOOGL | GraniteShares 15x vs. AXS 125X NVDA | GraniteShares 15x vs. Direxion Shares ETF |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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